- Accused ‘finfluencers’ could face up to two years in prison if convicted
Reality TV stars including TOWIE’s Lauren Goodger and Island’s Biggs Chris will appear in court after being accused of receiving payment to promote risky investments to their millions of Instagram followers.
The social media influencers, dubbed ‘finfluencers’, have been charged by the Financial Conduct Authority and could face up to two years in prison if found guilty.
Those under scrutiny also include Love Island’s Jamie Clayton, Rebecca Gormley and Eva Zapico, TOWIE’s Yazmin Oukhellou and Geordie Shore’s Scott Timlin.
The FCA claims that Nwanze and Holly Thompson, another Instagram personality also known as Holly Zucchero, used that account to provide advice on the buying and selling of so-called ‘contracts for difference’ (CFDs), between May 2018 and April 2021. .
The FCA describes CFDs as a “high-risk investment product used to bet on the price of an asset.” In this case it was a bet on foreign currencies.
Lauren Goodger, seen here in The Only Way is Essex, is among those charged by the FCA
Love Island contestant Biggs Chris, selected here at the British Ethnic Diversity Sports Awards in London in March 2020, is also facing legal action from the city’s watchdog.
The FCA said the combined number of Instagram followers of the people involved was 4.5 million.
Nwanze, 30, has been accused of running an unauthorized investment scheme and carrying out illegal financial promotions.
Thompson, 33, Chris, 32, Clayton, 32, Goodger, 37, Gormley, 26, Oukhellou, 30, Timlin, 36, and Zapico, 25, each face one count of broadcasting communications. unauthorized financial promotions.
All defendants are due to appear before Westminster magistrates on June 13.
The FCA said each of the charges is punishable by a fine and up to two years in prison.
The watchdog describes CFDs as “high risk derivatives”.
It was previously said that 80 percent of clients lose money when investing in CFDs.
They are often “highly leveraged”, meaning they use debt to try to boost returns, the FCA said. But that can cause investors to lose more money than they invested.
In the UK, the regulator has imposed restrictions on how CFDs and similar products can be sold and traded to retail clients.